Equipment Leasing Companies » Leasing Terms

Equipment Lease Broker

Celso — Sun, 08 Nov 2009 04:34:49 +0000

The equipment lease broker’s role is to match an equipment buyer with a funding source (lender) to finance the acquisition of desired business equipment. The lease broker builds in a fee (commission) for successfully matching the funding source with the equipment buyer (lessee). This fee is known as a broker fee.

Equipment Leasing Companies

Celso — Sat, 07 Nov 2009 07:18:16 +0000

There are over 2,500 companies that provide leases to american businesses. Equipment leasing companies are industrial finance companies, banks, and independent companies, both large and small. Many of these companies specialize in certain equipment or industries. They offer a wide range of services including the provision, maintenance, operation, managing, and re-marketing of equipment.

Funding Source

Celso — Sat, 07 Nov 2009 04:23:50 +0000

A funding source is a party who provides financing for a lease transaction. The term is most commonly used by equipment lease brokers in referring to lessors, but it can also be used by lessor in referring to those parties who provide lessors with the funds lessors use to purchase equipment.

Vendor Program

Celso — Thu, 05 Nov 2009 01:41:44 +0000

A vendor program is a program developed especially for a vendor by a leasing broker and its funding source to facilitate a long term relationship.

Vendor

Celso — Thu, 05 Nov 2009 01:39:06 +0000

A vendor is a company that sells leasable property and equipment.

Term

Celso — Thu, 05 Nov 2009 01:34:22 +0000

The term of the lease is the number of payments or years. The most common terms are 2-5 years (24 to 60 months). Sometimes when people in the business speak about terms, they are also talking about the dollar amount of the payment, interest rate and “end-of-lease” purchase option.

Subchapter S Corporation

Celso — Thu, 05 Nov 2009 01:28:20 +0000

A Subchapter S Corporation is a general corporation that has elected a special tax status with the IRS after the corporation has been formed. Subchapter S corporations are most appropriate for small business owners and entrepreneurs who prefer to be taxed as if they were still sole proprietors or partners. For many small businesses, the S Corporation offers the best of both worlds, combining the tax advantages of a sole proprietorship or partnership with the limited liability and enduring life of a corporate structure.

Step Up Lease

Celso — Thu, 05 Nov 2009 01:24:42 +0000

A step up lease is a customized payment plan where the lease payments increase over the term of the lease.

Step Down Lease

Celso — Thu, 05 Nov 2009 01:23:00 +0000

A step down lease is a customized payment plan where the lease payments decrease over the term of the lease.

Sole Proprietorship

Celso — Thu, 05 Nov 2009 01:21:28 +0000

A sole proprietorship is a business owned by a single individual. A sole proprietor has unlimited liability for business debt and obligations, but does not have to pay corporate income tax.